Globus Medical (GMED)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 133,142 | 227,951 | 171,953 | 111,433 | 171,989 |
| Long-term debt | US$ in thousands | 417,400 | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,997,960 | 1,846,370 | 1,741,390 | 1,506,300 | 1,402,450 |
| Return on total capital | 3.02% | 12.35% | 9.87% | 7.40% | 12.26% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $133,142K ÷ ($417,400K + $3,997,960K)
= 3.02%
Globus Medical Inc's return on total capital has exhibited variability over the past five years, as evidenced by the data provided. The return on total capital was 4.57% as of December 31, 2023, which represents a decrease compared to the previous years. In 2022, the return was notably higher at 12.80%, suggesting stronger performance in utilizing both debt and equity to generate profits.
Looking further back, the return on total capital was 11.19% in 2021, 7.67% in 2020, and 12.45% in 2019. This indicates some fluctuations in the company's ability to generate returns relative to the total capital employed in its operations. It is important for investors and stakeholders to closely monitor this metric to assess the efficiency and profitability of Globus Medical Inc in the allocation of its resources.
Peer comparison
Dec 31, 2023